Corn-Hog Ratio

What Is the Corn-Hog Ratio?

The corn-hog ratio is a calculation for figuring out the economic opportunity in raising animals, used to decide the profitability of raising hogs versus developing and selling corn feed. A comparison takes the price of a hog and partitions it by the cost of the corn expected to support the hog.

Understanding the Corn-Hog Ratio

The corn-hog ratio is utilized to decide the profitability of raising animals, hogs specifically. The calculation for the corn-hog ratio is the price of one hundredweight (cwt) of live, on-the-foot hogs separated by the cost of a bushel of corn. The ratio is utilized to assist farmers with deciding the value of a crop of corn as compared to the value of a hog, which they would need to feed with a similar crop of corn.

For instance, in the event that the price of a hog is $50/cwt and the cost of a bushel of corn is $4, the corn-hog ratio would be $50/$4 = 12.5.

Pigs have the highest feed conversion rate, meaning the amount required to carry them to harvest weight is not exactly some other animals animal.

Corn is utilized in this feed ratio since it is a primary type of feed utilized in raising domesticated animals. Assessments show feed corn makes up somewhere in the range of 65% and 70% of hog's eating routine. Numerous farmers who develop feed corn could either sell the actual corn as a commodity or feed it to their hogs and afterward sell the hogs.

Assuming not entirely set in stone to be more significant than the hog, the farmer would sell the corn and reduce their animals inventory. On the off chance that hogs are more significant than the corn, the farmer will involve the corn as feed, in this way selling less corn on the market. The [profitability ratio]) still up in the air to be productive above 1:12. Anything below that is viewed as unbeneficial.

Modern Application of the Corn-Hog Ratio

In the modern period, numerous farmers don't develop the feed corn required for their animals. With advanced technology and the wide accessibility of transportation and delivery, most farmers presently opt to have their feed delivered to the farm. The corn-hog ratio is as yet a dependable method for deciding if pork farming will be productive for the year.

A mathematical ratio can't account for certain occasions. In 2014, a plague moved throughout the piglet population, causing huge loss of inventory. These numbers altered the pork expectations for that year due to the fear of a subsequent pork shortage. Nonetheless, the ratio stays the benchmark for farmers attempting to choose whether to increase their live hog inventories or to winnow it.

The Bottom Line

The corn-hog ratio isn't simply used to decide the cost of raising a hog to market weight, however can be utilized to direct those raising animals on the off chance that they ought to sell the hogs, or sell the corn while lessening their amount of domesticated animals. Certain occasions can influence this ratio, for example, disease or rising corn costs. Toward the day's end, the farmer should conclude which product they will sell during that cycle.

Features

• In the event that still up in the air to be more important than the hog, the farmer would sell the corn and reduce their domesticated animals inventory.
• The corn-hog ratio is likewise used to assist farmers with deciding the value of a crop of corn as compared to the value of a hog, which they would need to feed with a similar crop of corn.
• The ratio is accomplished by working out the price of a hog partitioned by the cost of the corn expected to feed it.
• The corn-hog ratio is utilized to decide the profitability of raising domesticated animals.
• In the event that hogs are more significant than the corn, the farmer will involve the corn as feed, subsequently selling less corn on the market.

FAQ

What Is a Simple Definition of the Corn-Hog Ratio?

The corn-hog ratio is a ratio and is utilized to decide the profitability of raising animals. It is generally normally utilized for pigs (hogs).

What number of Bushels of Corn Does It Take to Raise a Hog to Market Weight?

It takes somewhat in excess of 10 bushels of corn to put up a hog for sale to the public weight. It is worth taking note of that the corn can once in a while be cut with different fixings to drop the total cost.

What Happens to Hog Prices assuming Corn Prices Go Up?

On the off chance that corn prices go up, hog prices will rise too. This follows general business rehearses where assuming the price of manufacturing increases, the price increases lockstep for the end consumer.